News & Media
Legislative Update: Congress Stops Shutdown, State Committees Advance Several Policies
After weeks of uncertainty, legislation passed to reopen the federal government, restoring and extending several critical healthcare programs. This bill provides short-term stability for physicians, hospitals, and patients in Michigan, while leaving some major policy decisions unresolved. Meanwhile, House and Senate Committees in Michigan continued to tackle several legislative packages that could affect the practice of medicine and patient care across Michigan.
Government Funding Bill Restores Key Healthcare Programs
Several programs that directly support patient care and physician training have been extended under the funding package passed by Congress and signed by the President. Funding for community health centers, the National Health Service Corps (NHSC), and teaching health centers that educate graduate medical students will continue. Under the legislation, these public health programs are extended through January 30, 2026 unless further action is taken. (Note: Some original flexibilities may have other specific expiration dates.)
Telehealth flexibilities have also been temporarily restored, allowing physicians to bill for home-based non-behavioral visits, audio-only visits, and expanded provider types. The Acute Hospital-at-Home initiative, which allows hospitals to provide inpatient-level care in patients’ homes with Medicare reimbursement, also continues. According to the continuing resolution, many of these services are extended until January 30, 2026.
The bill provides critical short-term relief for hospitals and healthcare providers by extending several key Medicare and Medicaid payment policies. Cuts to Medicaid Disproportionate Share Hospital (DSH) payments under the Affordable Care Act (ACA) have been delayed through the end of the current funding period, until January 30, 2026, preventing financial strain on safety-net hospitals that serve low-income and uninsured patients. In addition, inpatient payment adjustments for Medicare low-volume hospitals, Medicare-Dependent Hospital (MDH) payments, the work geographic index floor (1.0 GPCI) for physician payments, and add-on payments for ground ambulance services have all been extended through the same date. The bill also restores funding for CMS quality measurement programs, related contractor work, and hospice survey activities under the IMPACT Act of 2014. While certain elements of these quality programs are specifically authorized for the period between October 1 and October 31, 2025, the broader continuing resolution maintains government healthcare funding through January 30, 2026.
To offset the costs of these program extensions, the legislation temporarily extends 2% Medicare sequestration cuts by one month and reduces the Medicare Improvement Fund by $400 million. While these are largely administrative measures, they reflect the broader fiscal constraints under which federal healthcare programs operate.
Funding for the Supplemental Nutrition Assistance Program (SNAP) has been fully restored and extended through September 30, 2026, ensuring continued access to food benefits for millions of low-income individuals and families. This extension is particularly significant in Michigan, where many patients rely on SNAP to maintain adequate nutrition and manage chronic conditions such as diabetes and heart disease.
Although this bill restores funding and operational certainty for many programs critical to Michigan’s healthcare system, longer-term issues, including ACA premium subsidies, Medicare and Medicaid reforms, and permanent telehealth policies, remain unresolved. MSMS will continue to track developments, provide updates, and advocate for solutions that support patient access, provider viability, and public health. By staying informed and engaged, physicians and health systems can help ensure that Michigan’s healthcare landscape remains strong and resilient.
Happenings in the Michigan House of Representatives
The House Health Policy Committee advanced House Bills 4896 and 4925 (H-2), which establish a pathway for internationally trained physicians to obtain licensure in Michigan. The bills create a tiered licensing structure, beginning with a temporary license, followed by a limited license, before full licensure eligibility is granted after a defined period of supervised practice. The legislation was sent to the House Rules Committee for further review.
MSMS provided feedback on this legislation consistent with the Federation of State Medical Boards Advisory Commission on Additional Licensing Models Guidance. We continue to closely monitor these bills, emphasizing that high standards of training, patient safety, and quality of care remain the top priorities.
Also before the Committee was a package of bills (House Bills 5201, 5202, and 5203) that would require additional data reporting when abortions are performed, and Senate Bill 95, which would prohibit debt collection by a hospital if that hospital in not in compliance with price transparency laws. While both issues drew significant discussion, no votes were taken at this time. MSMS will continue to review the proposals to assess their potential impact on care delivery and patient confidentiality.
The House Rules Committee advanced House Bill 4915 on a party-line vote. The measure would prohibit implicit bias training as a condition of medical licensure. While it may advance through the House, the Senate is unlikely to act on the bill. MSMS continues to advocate for comprehensive reform that would stop the arbitrary continuation and addition of mandatory content.
Senate Health Policy Focus
The Senate Health Policy Committee advanced several bills related to:
- Medical debt transparency and consumer protections ( SB449, SB450, SB451)
- Informed consent for invasive bodily examinations (SB475, SB476)
- Creation of a Palliative Care Advisory Task Force (SB483)
- Updates to procedures for issuing death certificates (HB4077, HB4078)
- Enact a Physician Assistant State Licensure Compact (HB4309)
Furthermore, the Senate Committee on Regulatory Affairs took up Senate Bills 462, 463, 465, and 466, which would establish licensure requirements for nicotine and tobacco retailers as well as remove penalties for a minor’s purchase, possession, or use of tobacco products. MSMS is a long-standing member of the Keep MI Kids Tobacco Free Alliance and supports these bills.